Accumulated Depreciation Buildings

Code: 1221
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Account Information

Account Type Statement of Financial Position
Normal Balance Credit

Definition

Accumulated depreciation related to buildings

Note: This account may be broken down into sub-ledgers as needed (e.g., customer/supplier/bank names or branches).

Common Journal Entries

Recorded annual building depreciation

Dr. Depreciation Expense
Cr. Accumulated Depreciation Buildings

Eliminated accumulated depreciation on sale

Dr. Accumulated Depreciation Buildings
Cr. Buildings

Adjusted accumulated depreciation after revaluation

Dr. Accumulated Depreciation Buildings
Cr. Revaluation Surplus

Additional depreciation due to improvements

Dr. Additional Depreciation Expense
Cr. Accumulated Depreciation Buildings

International Accounting Standards

IFRS IAS 16 Property, Plant and Equipment

Presented as a deduction from gross carrying amount. Reset to zero on revaluation.

US GAAP ASC 360 Property, Plant and Equipment

Same presentation. No revaluation so balance accumulates until disposal.